How to create Picking ,Packing and PGI

Picking:

It is necessary to prepare correct quantity and quality of goods as specified in sales order for shipping on schedule as required by the customer. Material picking is done by warehouse management(WM). WM picking is done via transfer order. The transfer order is the basis for the picking list, it is used to withdraw the ordered goods from stock. There are three ways of picking-

1. Pick Delivery individually.2. Picking can be scheduled to run at per-defined intervals.

3. SAP SD module can be configured to execute picking automatically.

Packing:

Packing function is used to exchange product data between suppliers and customers. The packing of product is done by the packing material. These packing materials need to be created in the material master with material type “VERP”. Packing can we done in SAP in two ways-

1. Manual Packing2. Automatic Packing

There are many steps in packing function like manual packing and auto packing with single level and multilevel packing.

Post Good Issue( PGI ):

Post goods issue is the last step of delivery/shipment processing. Here in, ownership of the goods transfer to the customer and the stock is updated. The carrier in turn transfers the ownership to the final customer once goods are delivered.

Steps for Picking ,Packing and PGI are as below-

1. Create outbound delivery with reference to sales order.2. Create picking request.

3. Creating Packing.

4. Create PGI.

STEP-1 Create Outbound delivery

1. Enter T-code VL01N in command bar.2. Enter Shipping Point.

3. Enter Selection Date and sales order.

Click on save button.

A message "Delivery 80016014" has been saved.

STEP-2 Creating Picking Request

1. Enter T-code LT03 in command field.2. Enter warehouse Number / Plant / Delivery and press enter .

Click on save Button.

A Message" Transfer order 0000002638 created" will be displayed.

STEP-3 Create Packing

Sub-STEP 3.1

1. Enter T-code VL02N in command field.2. Enter outbound delivery no,which was created earlier.

3. Click on Pack button.

Sub-STEP 3.2

1. Select Tab "Pack material"2. Enter packing material detail.

Click on save button.

STEP-4 Post Good Issue ( PGI ).

By PGI (Post Goods Issue) the owner ship of the material or goods will be changed from company to the customer.

Sub-STEP 4.1

1. Enter T-code VL02N in command field.2. Enter Outbound Delivery number.

3. Click on Post Goods issue Button.

A message "Replenishment dlv. has been saved" is shown. When we do PGI , two documents will be created-

Material document (Regarding stock reduction)1. Enter T-code MB03 in command field and Enter sales order no in

sales order field and execute the report.

2. Material document will be displayed .

Accounting document (Cost of goods sold will credited and stock value will be debited.)

1. Enter T-Code S_ALR_87014387 in command field.

2. Enter Material code.

3. Click on execute button.

What is a Return?

If a customer is not satisfied with the product or the deliverable , Businesses need to create a return, based on customer return request.

What is Free of Charge Delivery ?

In this case , customer is not charged for shipping. This order type is generally used for sending free sample to customers.

What is Subsequent Delivery?

When a customer receives lesser number of goods than that ordered ,or if the goods have been damaged in the shipment, businesses provide free-of-charge subsequent delivery of goods.

What to do when a customer raises return request ?

Sales Department may take any one of the following actions during the return process.

1. Approve the complaint and create a credit memo.2. This is done when customer wants refund for the goods. The

system creates credit memo to customer with reference to sales order.

3. Approve the complaint, and implement a free of charge subsequent delivery of the disputed goods. This is done when customer want to replace the goods owing to shortfall in delivery or damage in shipment or any other legitimate reasons.

4. Reject the complaint if complaint is not valid. For example, customer makes a complaint on wrong data.

How to Create Return Order Sales Department can create return order by T-code VA01. Return order can be created with reference to sales order or billing documents.

Step-1

1. Enter T-code VA01 in command field.2. Enter Order Type RE(Returns).

3. Enter Sales Area data in Organizational Data Block.

4. Click on Create with Reference Button.

Step-2

1. Enter Sales order # reference for return order.2. Click on Copy Button.

Step-3

1. Enter PO number.2. Enter PO date.

3. Enter Order reason .

4. Enter Ordered Quantity.

Step-4

Click on save button. A Message like "Return 60000295 has been saved" displayed.

How to create Return Delivery Document

In order to receive returned goods from customer, Sales department creates return order. Based on return order, return delivery document is created. Return delivery document is created using T-code VL01N. Standard return delivery document type is LR. When return delivery document is created,Logistic departments receives the returned product. Step-1

1. Enter T-code VL01N in command field.2. Enter Shipping Point.

3. Enter Delivery Type LR(Return Delivery).

Press Enter Button.

Step-2

Enter Return Delivery Quantity.

Step-3

Click on save button.

A message "Return delivery 840000 has been saved" displayed.

How to create Free of Charge Delivery

Free of charge delivery process creates a non-billed sales order .E.g. If some product is shipped for free sample to customer, free of charge delivery is carried out.This document is not relevant for billing because the customer is not billed for the free of charge delivery.

Step-1

1. Enter T-code VA01 in command field.2. Enter Order type FD(Delivery Free of Charge).

3. Enter Sales area data in Organizational block.

4. Click on Create with References.

Step-2

1. Enter Sales order no. for references.2. Click on Copy button.

Step-3

1. Enter Sold-To party / Ship-To Party.2. Enter Order Reason.

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Step-4

Click on Save button.

How to create Subsequent Delivery

Once return process takes place,customer may request

1. Good replacement2. Refund.

When customer chooses replacement option,then subsequent sales order is created.If customer chooses refund option,then money can be refunded to customer by credit memo. Step-1

1. Enter T-code VA01.2. Enter Order Type SDF .

3. Enter Sales Area data in Organizational Data.

4. Click on Create with References Button.

Step-2

1. Enter Sales Order no. for references.2. Click on Copy button.

Step-3

1. Enter Order Reason.2. Enter Order Quantity for which we create Subsequent Delivery

free of charge.

Step-4 Click on Save Button.

A message Subs. Dlv. Free of Ch. 12355 has been saved" displayed.

All About Consignment Process

In consignment process product are stored at the customer location but the owner of this product is still company. Customer stores the consignment stock at their own a warehouse. Customer can consume product from warehouse at any time and customer billed for product for actually quantity consumes. In Consignment Stock Processing, there are four main transactions in the SAP System, all of which support separate management of stock:

Consignment Fill-Up (Stock Fill up at warehouse). Consignment Issue (Stock issue from warehouse). Consignment Return (Stock return from customer). Consignment Pickup (Stock return to manufacture).

Consignment Fill-Up

Consignment Fill-Up is a process, in which company store product at customer sites and still company is the owner of this product. This process is known as consignment fill up (CF). Sales order type for consignment filling is – KB.

In consignment fill up only order and delivery takes place.

Step-1 Create Consignment Fill Up

1. Enter T-code VA01 in the command field.2. Enter Order type CF(consignment fill up).

3. Enter sales area in organizational data.

Step-2

1. Enter PO number.2. Enter PO Date.

3. Enter Order Quantity.

Step-3

Click on save button.

A message as below is displayed.

Consignment Issue

The customer can access product at any time to sell or their use from their warehouse and company will issue invoices for only accessed product, and this invoices known as the consignment issue (CI). Sales order type for consignment issue is – KE.

In consignment Issue Order, Delivery and Invoices take place.

Step-1

1. Enter T-code VA01 in command field.2. Enter order type CI (Consignment issue).

3. Enter Sales area data in Organizational data block.

Step-2

1. Enter Sold-To party / Ship-to Party / PO number.2. Enter PO Date.

3. Enter Material and ordered quantity.

Step-3 Click on save button.

Consignment Return

If customer return product due to damage ,poor quality, expiry, then this process is called consignment return (CONR). Consignment return happens after consignment issue. i.e customer can return Consignment product, the product are issued to customer by Consignment issue process. Sales order type for consignment issue is –KA.

In consignment Return Order, Delivery, Invoices and Credit for return take place.

Step-1

1. Enter T-code VA01 in command field.2. Enter order type CONR(Consignment Returns).

3. Enter Sales area data in Organizational Data block.

Step-2

1. Enter Sold-to Party / Ship-to party.2. Enter Order reason.

3. Enter Material and ordered quantity.

Step-3

Click on save button.

Consignment Pickup

When a customer request to the company ,to take back the product, the company will pack this product from customer sites, this process is known as Consignment Pickup (CP). In consignment pickup process , product are not issued to customer and only stored at customer warehouse as consignment stock. Sales order type for consignment issue is – KR.

In consignment Pickup Order,Return Delivery takes place.

Step-1

1. Enter T-code VA01 in command field.2. Enter Order type CP(Consignment pickup).

3. Enter Sales Area data in Organizational Data block.

Step-2

1. Enter Sold-to Party / Ship-to party.2. Enter Order reason.

3. Enter Material and ordered quantity.

Step-3

Click on save button.

Output proposal using the condition technique

Output is a type of media from a business to one of its business partners. The media types may be printouts, telexes, faxes, e-mails or EDI. The process to determine the "media" is Output determination.

The output can be sent to the business partners (Customer / Vendor) in the format which is defined in documents such as invoices, order confirmations, delivery notes, or shipping notifications. Output determination can be maintained in two ways-

1. Customer master – Output determination can be maintained in customer master. Output proposal triggered by the customer master does not have the benefit of using an access sequence (A search criteria, which is using to get valid data for a condition type).

2. Condition technique – Output determination can be triggered by condition technique.

Output determination using condition technique can be maintained for three purposes-

Output determination for sales activities (Sales call, Sales Letter, Phone calls etc.).

Output determination for sales documents (Invoice, etc.). Output determination for billing documents(Billing, etc.).Output determination for sales activities.

Step-1

1. Enter T-code V/30 in the command field.2. Select output types node.

3. Click on new entries' button.

Step-2

1. Enter output type , description and select general data tab.2. Enter Access sequence.

3. Check Access to conditions.

4. Unchecked multiple issuing.

Step-3

1. Enter Transmission medium(medium of output).2. Enter Partner function.

Step-4

Check timing 4 in time tab.

Step-5

Click on save button. A message "Data was saved " will be displayed.

ubstituting Reason

Substituting Reason is a process that controls, how the system performs product selection.

Substitution reason is needed when material substitution action taken place. It defines below things -

Define strategy for alternate material that should be offered. Provide a message for information to user before substitute the

material.Step-1

1. Enter T-code OVRQ in the command field.2. Click on New Entries button

Step-2

1. Enter Substitute Reason and description.2. Click on save button.

A message "Data was saved " will be displayed.

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How to Create Bill of Materials

A bill of material (BOM) describes the different components that together create a product. For example- A computer is a product. It is a combination of CPU, Keyboard, Monitor, Mouse etc. The bill of material contains the item number of each component, quantity required in the manufacture of a product and the unit of measure of the item.

SAP R/3 allows the creation of various categories of Bill of Material. Some of the categories of the BOM are -

Material BOM (T-code CS01) - A bill of material that you create for a material known as material BOM.

Equipment BOM (T-code-IB01) - Equipement BOM is used to describe the structure of equipment and to assign spare parts to equipment for maintenance purpose.

Sales Order BOM (T-code-CS61) -Sales Order BOM is used for make-to-order production of products according to the requirements of customers.

Functional location BOM (T-Code-IB11) - A functional location BOM can be created individually for each functional location or a group of technical objects.

Document BOM (T-code-CS11) - A complex document may be made up from multiple documents such as program, papers, technical drawing etc. These related information and documentation object grouped as a unit using a BOM.

Step-1 Create Material BOM

1. Enter T-code CS01 in the command field.2. Enter Material / Plant / BOM usage .

Step-2

Enter Item Code, Material component and Quanity.

Step-3

Click on save button. A Message as will be displayed.

How to Correct Invoice

Background:

Invoice Correction is a process to correct quantity or prices in the invoices for one or more line items.

The system calculates the differences between original amount and corrected amount. Invoice correction request is automatically blocked by the system,until it has been checked. Once its approved,we can remove the block.

The system creates either a credit or a debit memo according to the total value of the invoice correction request.

Step-1

1. Enter T-code VA01 in command field.

2. Enter in Order Type field Invoice Correction Request.

3. Enter Sales Organization / Distribution channel / division in organization data.

4. Click on Create with references button ,to create invoice correction with reference of sales document.

Step-2.

1. Enter Sales order no in which correction is required2. Click on Copy button.

Step-3

1. \Ship-To party / PO Number can be changed.2. Enter Req. deliv date

3. Order quantity can be changed.

4. Click on save Button.

A message "Data Was Saved" is displayed.